SPY 216.42 – Sharp weekly reversal candle pattern points to 219.60 peak
SPY found support at 208.38 (November 7, 2016 low) near the 200 day moving average, before reversing sharply higher. The upside break through the 2-month confirms a channel breakout and suggests a test of the 219.60 peak (August 22, 2016). A decisive clearance of the latter is needed to resume the year-long uptrend to new highs.
However, if the 219.60 area manages to cap near-term momentum, consolidation would follow. There is scope for pulling back towards the 212.34 support (near the 20 day moving average). Below lies the key 208.38/200 day moving average which should hold the pullback.